Ebay charging the buyer more for shipping than it is costing me.

[usedautopartsmanitoba]

Hey everyone, im a new seller on eBay selling for about 3 months now.

Just had a quick question about the shipping fees.

Whenever I print a shipping label the cost ends up being around $2 or more less than what ebay has charged my buyer.

Is this normal? Could it be something on my end? I Have a log for all my items with shipping weights, sizes etc. Which gets copied into the ad so the same size/weight is bring entered when I print the label but it's usually less before the discount printing a label thru PayPal.

I'd hate to end up getting negative feedback for a few dollars, so I'd like for my buyer to pay what it costs me to print the label. I have no problem eating the printing/packing cost as I make my boxes from free boxes i pick up.

[ypdc_dennis · Accepted solution]

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@usedautopartsmanitoba wrote:

Whenever I print a shipping label the cost ends up being around $2 or more less than what ebay has charged my buyer.

Is this normal? Could it be something on my end? I Have a log for all my items with shipping weights, sizes etc. Which gets copied into the ad so the same size/weight is bring entered when I print the label but it's usually less before the discount printing a label thru PayPal.

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Buy the label from Canada Post -- that way you don't get the shipping discount that is available through paypal, then you should match.

eBay calculates based on what the over-the-counter Canada Post rates are, not what you pay through paypal.

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Also don't forget that paypal takes a percentage of the shipping fee as the money passes through their hands, and eBay also has final-value-fees on shipping as well.

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[usedautopartsmanitoba]

Alright I understand now I'll have to start paying for the shipping at the post office and adding tracking information.

thanks very much for the quick reply.

[momcqueen]

There is a feature when you set up your shipping rules that lets you choose the discount on retail counter rate but none of the percentage choices match exactly what paypal discounts are available to us through Paypal Shipping on Canada Post labels. And the discount available to sellers for Exped Parcel is more than Xpresspost and also then different than Tracked Packet or Small Packet. So if you get one rate lost exactly correct like picking a 20 per cent discount to be reflected to the buyer for the 18 per cent that paypal offers to the shipper, you will be undercharging buyers for postage a little on Exped (18 per cent discount) and Tracked Packets (14 per cent discount) but not charge enough for Xpresspost (only nine per cent discount) while Small- and Light-Packet Airmail have no discounts. 

I might be a few points off, I'm going by memory here. 

Another way to workaround that is to include a percentage discount on postage but then set a 'handling fee' of like 30 cents extra on domestic orders to make it almost exactly right and then a $1.25 on international packages but this is nitpicking. Unless it is really important to you, go with a reasonable average. You might be out a dollar on one order and then make it up on the next. Or always undercharge for postage but build your wiggle room into your asking price. While it's true that some buyers may be irate over an overcharge of $2 one postage most buyers merely hope to avid the 'excessive' handling fees of $15 to $20 to $30 extra which some sellers will insist are warranted no matter what their buyers think. 

Shipping is probably the most complicated part of selling here. 

[momcqueen]

These are valuable links:

http://pages.ebay.ca/sellerinformation/ship-smart/shipping-basics/ebay-labels.html and

http://pages.ebay.ca/sellerinformation/ship-smart/ebay-shipping-partners/canadapost/

Benefits of Printing Shipping Labels Online

• Save up to 18% on Canada Post domestic shipments via Expedited Parcel™. Save up to 18% on Canada Post US shipments via Expedited Parcel™-USA.
• Save up to 14% on Canada Post international and US shipments via Tracked Packet™-International and Tracked Packet ™-USA.
• Save 8% on Canada Post domestic shipments via Xpresspost™ and Regular Parcel.
• Save 9% on Canada Post U.S. shipments via Xpresspost™-U.S.A. and international shipments via Xpresspost™-International (Discounts not available on all USA and International Small Packets and Light Packet services).
• 

[autovat]

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@usedautopartsmanitoba wrote:
Alright I understand now I'll have to start paying for the shipping at the post office and adding tracking information.

thanks very much for the quick reply.

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Don't actually do that, the above poster was being sarcastic....  

Discounts are a good thing

[momcqueen]

Correct. Passing along those discounts to the buyer are an even better thing.

Unfortunately, the programming is not intuitive enough to make it match exactly right in all instances so, like I wrote, if a seller is very determined to charge to the buyer the exact rate he or she pays to the shipper , it can be done but it's tricky and might be more tinkering than it's worth. It requires a discount that may or may not match their actual postage cost with a modest handling fee to make up the difference and bring it to actual cost. And even then it won't be correct for every instance, just the ones the seller uses most often. 

I chronically undercharge buyers for Xpresspost, for instance, so that my displayed domestic Exped postage prices for the buyer are close to what I pay. This is due to our discount through paypal shipping being so much greater for Exped than Xpresspost. 

[recped]

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@mjwl2006 wrote:

Correct. Passing along those discounts to the buyer are an even better thing.

Unfortunately, the programming is not intuitive enough to make it match exactly right in all instances so, like I wrote, if a seller is very determined to charge to the buyer the exact rate he or she pays to the shipper , it can be done but it's tricky and might be more tinkering than it's worth. It requires a discount that may or may not match their actual postage cost with a modest handling fee to make up the difference and bring it to actual cost. And even then it won't be correct for every instance, just the ones the seller uses most often. 

I chronically undercharge buyers for Xpresspost, for instance, so that my displayed domestic Exped postage prices for the buyer are close to what I pay. This is due to our discount through paypal shipping being so much greater for Exped than Xpresspost. 

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Better for who? It's certainly not better for me and since we are talking Canada Post rates no matter how much discount you give out buyers will still think they are being "overcharged".

[momcqueen]

And buyers think Free Shipping really means the Postage Fairy visited overnight and no one at all is paying for shipping. I know. I agree with you. On the other hand, I can safely boast on my listings that I charge no handling fees, undercharge buyers for postage, and take the deficit from my ample asking price.

If a buyer is going to be angry about the cost of postage, I'd rather they direct that at the shipper as opposed to seller. I'm very clear on my packing slips about cost of postage versus postage paid by the buyer.

[momcqueen]

I'm the first to admit that, as a buyer, I despise handling fees. I'm already paying the seller for his item, and the shipper to bring it to me. That's adequate. I tip generously in restaurants after I eat, not before. Handling fees are like mandatory gratuities for poor to mediocre service. Plus, I've seen them abused on eBay too often by sellers who are trying to discourage international sales, for example, by slapping on an extra $25 for the added trouble of having to compete a customs declaration.

[pjcdn2005]

It's much more convenient and cost effective to use PayPal shipping. It doesn't make sense to me to buy postage at the post office but of course that is up to you.

Have you had buyers ask about the difference n cost?  I think that most buyers realize that shipping and handling also includes the cost of packaging and few probably look to see see what the cost is on the label.  If you are concerned though you could set up your shipping preferences to discount calculated shipping.  Tracked, small and light packet rates are based on weight, not distance so for those methods there is no need to use calculated shipping to the US....just decide what you want to charge and enter a flat rate.

You have quite a few $10 and $15 items that you are sending with tracked packet USA.  Depending on the weight of these items small packet would be less expensive and might result in more sales.  SP does not have tracking but  few items ever get lost anyway.

[pjcdn2005]

i don't add a handling fee but I would never consider it to be any sort of 'tip'"as it Is to be used for the cost of boxes, tissue etc. That certainly isn't included in the postage fee so for most sellers, the difference between the CP rate and the discounted rate helps to pay for those costs.   If they aren't paid for by the buyer in the shipping cost then they are going to be part of the item price....either way, the buyer is going to be charged.

[momcqueen]

While pj is correct about Small Packets costing less than Tracked, Items Not Received (INR) are not your only concern with mailings. When you ship something without tracking, you rely on a buyer answering the Did You Receive question in your favor. You will get a Late Shipment defect if they don't. Shipping with tracking means you are automatically fine if you get an acceptance scan within your stated handling time. Shipping without tracking leaves you at the mercy of the postal system and a buyer's memory of exactly what date their order arrived.

But if sales are slow you may consider the additional risk that may be offset by increased sales if you cut your cost of postage in almost half to the USA and by two-thirds internationally. 

[usedautopartsmanitoba]

Ive gotten a few buyers who have asked for invoices as apposed to just paying for the item, and I know when I view it on my phone and one of the buyers stated the shipping under the purchase price say free, so they are already confused anout that yet im charging them shipping. Then to add to it charging more then im paying.

I do ship everything either tracked packet or expedited because I don't get a lot of feedback or confirmation until way later. I've only recieved 3 of 14 items sold, so it delays it pretty long. Which is understandable since im selling used auto parts. I'd rather someone feedback me after they made 100% sure the part is what they wanted. but since my feedback is low and im trying to Appeal to the US costumes I charge less in price to balance higher shipping charges (which works out for canadian customer cheaper parts, faster, and less shipping/no duty)

Thanks for the shipping links, I'll read them in the morning.

[sylviebee]

I do things a little differently.

The shipping cost I charge my buyers has only a very loose relationship to my actual cost.

I peg shipping cost at the amount I think will sell my item and sometimes that's zero.

My buyers usually pay less than my cost because I know I have to compete with domestic USPS shipping costs.

Sometimes buyers pay more than my cost, but when that happens I make sure they are never aware of that.

Also, remember that when the label shows the cost of shipping buyers are seeing $US while you are paying $C.

There is nothing to gain by billing your buyers your actual cost of shipping.

There is a lot to be gained by pegging shipping cost a the amount you think won't hamper the sale.  Sometimes t's best to charge a little more for the item and a little less for shipping, but there are times when you can charge more for shipping than your actual cost.

Whatever sells the item.

[momcqueen]

I started a new thread for this discussion since I feel badly that the member's original question has been overtaken by us debating the merits of handling fees. Out of courtesy to the OP, let's consider moving that argument on the merits or demerits of it to the thread: http://community.ebay.ca/t5/Seller-Central/HANDLING-FEES-PRO-or-CON/m-p/351006#M68192

Then we can discuss it to our heart's delight without giving the OP the impression we are trying to strong-arm him or her into doing something he may or may not want to do. 

Sound good? Yes, no maybe so? 

[pjcdn2005]

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@mjwl2006 wrote:

While pj is correct about Small Packets costing less than Tracked, Items Not Received (INR) are not your only concern with mailings. When you ship something without tracking, you rely on a buyer answering the Did You Receive question in your favor. You will get a Late Shipment defect if they don't. Shipping with tracking means you are automatically fine if you get an acceptance scan within your stated handling time. Shipping without tracking leaves you at the mercy of the postal system and a buyer's memory of exactly what date their order arrived.

But if sales are slow you may consider the additional risk that may be offset by increased sales if you cut your cost of postage in almost half to the USA and by two-thirds internationally. 

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That's not true.  If they don't answer the question and there is no tracking, you do not get a late shipment mark against you. The late shipment system has been around for a year and it hasn't affected me at all.  Yes there were a couple of times when a customer marked it as not on time but so what?  I easily stayed below the threshold without charging the way I ship my items. If tracking works for you that's great but I don't think that it is a 'given' that not using it is going to cause a late shipment problem.

[momcqueen]

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@pjcdn2005 wrote:

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@mjwl2006 wrote:

While pj is correct about Small Packets costing less than Tracked, Items Not Received (INR) are not your only concern with mailings. When you ship something without tracking, you rely on a buyer answering the Did You Receive question in your favor. You will get a Late Shipment defect if they don't. Shipping with tracking means you are automatically fine if you get an acceptance scan within your stated handling time. Shipping without tracking leaves you at the mercy of the postal system and a buyer's memory of exactly what date their order arrived.

But if sales are slow you may consider the additional risk that may be offset by increased sales if you cut your cost of postage in almost half to the USA and by two-thirds internationally. 

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That's not true.  If they don't answer the question and there is no tracking, you do not get a late shipment mark against you. The late shipment system has been around for a year and it hasn't affected me at all.  Yes there were a couple of times when a customer marked it as not on time but so what?  I easily stayed below the threshold without charging the way I ship my items. If tracking works for you that's great but I don't think that it is a 'given' that not using it is going to cause a late shipment problem.

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I said: "When you ship something without tracking, you rely on a buyer answering the Did You Receive question in your favor. You will get a Late Shipment defect if they don't." As in 'don't answer it in your favour'. Not 'don't answer it at all.' Please see the 'rely on the buyer part' part of the sentence for context and reference.  

You said: "If they don't answer the question and there is no tracking, you do not get a late shipment mark against you." 

This is assuming they don't answer the question on an untraced item. How many people go to the trouble of leaving feedback but don't answer the on-time question? What makes you think any buyers gave you a 'free pass' if you have no idea when their order was received? The date they left feedback? The buyer could have waited ten days before leaving feedback and answered 'yes' to the on-time question as opposed to your assumption they didn't answer it at all, phew. You have no way of knowing. The only way you know and have control over that type of defect is with tracking. 

It still proves my point that if the buyer reports an untraced order received late, you get a defect. There is no arguing that, it is fact.

Also, the OP seller is new. You have a feedback count of 3000+. He or she has less wiggle room to absorb a Late Shipment shock than you do. I'm happy that your defects haven't caused your account to be sanctioned but I don't think I would advise a new seller that it's okay to not worry about it. 

[lucitabby]

When the Paypal discount is $1.00 or more than what the buyer paid, I send them a refund.  KISS

[momcqueen]

That is also an alternative that can keep many buyers happy. 

Yet when I used to do the same to address postage overcharges, I came to wonder if paypal took those routine and regular refunds of a dollar or two to mean that I was having problems selling. Like it might impact my standing with them. Paypal cannot like it much since they are issuing refunds for small amounts and deducting their fees from it as well.

I never did call paypal to ask so I cannot say for certain it has any impact whatsoever on how paypal determines a seller's relative trustworthiness.

I will ask the next time that I have reason to call. I've questioned it myself for years so I'd like to actually know the answer instead of fear it for perhaps no good reason. I have bookmarked this thread and will update it in the future with the answer to my question.